NLIS 2
September 6, 2001
(Industry, Trade and Rural Development)
 

Minister announces EDGE funding for two companies in growing sectors

Industry, Trade and Rural Development Minister Beaton Tulk announced EDGE status today for Shearwater Geophysical Corporation and Responsive Marketing Group through his department's Economic Diversification and Growth Enterprises (EDGE) Program.

Shearwater is a local company that was set up to provide seismic data processing services to the eastern Canadian offshore oil industry. "This company holds a lot of promise. As exploration continues on the east coast of Canada, the acquisition of seismic data will continue to grow, creating new business and employment opportunities for this province through firms like Shearwater," said Minister Tulk. "Shearwater is also the first commercial company east of Alberta capable of processing seismic data, demonstrating once again that we can be world class leaders in this emerging new industry."

Shearwater Geophysical Corporation's St. John's-based operation will require four to five people by the end of the first year. Hiring is projected to reach 10+ people by the end of the third year.

The Responsive Marketing Group (RMG) has recently set up a second call centre in St. John's named Special Projects Unit Call Centre Inc. "RMG provides telemarketing services across the country with successful operations in Toronto, New Brunswick and here in St. John's," said Minister Tulk. "The province's information and communications technology industry generated $668 million in revenues in 2000, and 5,000 Newfoundlanders and Labradorians were employed in the industry. Without doubt, this is a strong growth sector for our province."

Special Projects Unit Call Centre Inc. intends to employ 200 people within two years. The call centre will be open year round, seven days per week, 16 hours per day. It will operate three shifts and will make calls throughout Canada and the United States for charities, research polling and consumer magazines.

Minister Tulk said, "EDGE was a significant factor in these companies' decisions to grow their businesses or start up new operations here in the province."

The EDGE program is available to both new and expanding businesses. Companies meeting EDGE criteria are eligible for a 10-year tax break from provincial corporate income tax and provincial payroll tax, followed by a five year phase-in of these taxes; unserviced Crown land for a nominal fee; and access to a facilitator who will help obtain the required permits and licences associated with start up or expansion. In addition, many of the province's municipalities participate in the EDGE program and offer similar tax holidays from property and/or business tax.

To be designated an EDGE corporation, an applicant must show potential for minimum capital investment of $300,000 or incremental sales of $500,000 annually, the potential to create and maintain at least 10 permanent jobs, and must provide a substantial net economic benefit to the province, among other requirements.

Media contact: Josephine Cheeseman, Communications, (709) 729-4570.

2001 09 06                                         10:45 a.m.